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BJ’s Restaurants, Inc. Reports Fiscal 2019 First Quarter Results
First Quarter 2019 Highlights Compared to First Quarter 2018
“BJ’s strong sales momentum in the latter part of the quarter offset challenging weather conditions throughout the country and drove another quarter of solid top and bottom line results,” commented
“Our new zucchini noodles and slow roast tri-tip sirloin are quickly becoming guest favorites and reasons to visit BJ’s,” Trojan continued. “In addition to our new menu items and other sales building initiatives, we are beginning to roll out our new Gold Standard Kitchen Systems to all of our restaurants in the second quarter. These new systems will focus on our kitchen organization, food prep and line cook speed to further enhance our already high quality positioning in the casual dining space.”
In the first quarter of fiscal 2019, BJ’s opened one new restaurant in
During the first quarter of 2019, the Company repurchased and retired approximately 249,000 shares of its common stock at a cost of approximately
The Company’s Board of Directors declared a cash dividend of
Trojan concluded, “BJ’s sales and operating initiatives, combined with our long-term strategy of opening high quality new restaurants, strong cash flow from operations and a healthy balance sheet, continue to provide us the financial flexibility to simultaneously execute on multiple initiatives and enhance shareholder value.”
Investor Conference Call and Webcast
Forward-Looking Statements Disclaimer
Certain statements in the preceding paragraphs and all other statements that are not purely historical constitute “forward-looking” statements for purposes of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. Such statements include, but are not limited to, those regarding expected comparable restaurant sales and margin growth in future periods, total potential domestic capacity, the success of various sales-building and productivity initiatives, future guest traffic trends, construction cost savings initiatives and the number and timing of new restaurants expected to be opened in future periods. These “forward-looking” statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those projected or anticipated. Factors that might cause such differences include, but are not limited to: (i) our ability to manage new restaurant openings, (ii) construction delays, (iii) labor shortages, (iv) increases in minimum wage and other employment related costs, including compliance with the Patient Protection and Affordable Care Act and minimum salary requirements for exempt team members, (v) the effect of credit and equity market disruptions on our ability to finance our continued expansion on acceptable terms, (vi) food quality and health concerns and the effect of negative publicity about us, our restaurants, other restaurants, or others across the food supply chain, due to food borne illness or other reasons, whether or not accurate, (vii) factors that impact
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Percentages reflected above may not reconcile due to rounding.
(1) Percentages represent percent of total revenues.
Note Regarding Non-GAAP Financial Measures
The Company is reporting below certain non-GAAP financial results and related reconciliations to the corresponding GAAP financial measures. These non-GAAP measures are not in accordance with, or a substitute for, measures prepared in accordance with GAAP, and may be different from non-GAAP measures used by other companies. These measures should only be used to evaluate the Company's results of operations in conjunction with corresponding GAAP measures.
Restaurant Level Operating Margin
Restaurant level operating margin, a non-GAAP financial measure, is equal to the revenues generated by our restaurants less their direct operating costs which consist of cost of sales, labor and benefits, and occupancy and operating costs. This performance measure includes only the costs that restaurant level managers can directly control and excludes other operating costs that are essential to conduct the Company’s business, as detailed in the table below. Management uses restaurant level operating margin as a supplemental measure of restaurant performance. Management believes restaurant level operating margin is useful to investors in that it highlights trends in our core business that may not otherwise be apparent to investors when relying solely on GAAP financial measures. Because other companies may calculate restaurant level operating margin differently than we do, restaurant level operating margin as presented herein may not be comparable to similarly titled measures reported by other companies.
A reconciliation of income from operations to restaurant level operating margin for the first quarter ended
Percentages above represent percent of total revenues and may not reconcile due to rounding.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”)
Adjusted EBITDA is a non-GAAP financial measure that represents the sum of net income, interest expense, income tax expense, depreciation and amortization, stock-based compensation expense, other expense (income) and loss on disposal and impairment of assets detailed within the reconciliation below. Management uses Adjusted EBITDA as a supplemental measure of our performance. Management believes these measures are useful to investors in that they highlight cash flow and trends in our core business that may not otherwise be apparent to investors when relying solely on GAAP financial measures. Because other companies may calculate these measures differently than we do, Adjusted EBITDA as presented herein may not be comparable to similarly titled measures reported by other companies.
ASU 2016-02 Reconciliation
The following table illustrates the impact from the adoption of ASU 2016-02 on our results for the first quarter ended
(1) Prior to the adoption of ASU 2016-02, this amount was recorded as “Cost of sales” expenses. Amount represents contract considerations, which is now required to be allocated to the lease and non-lease components and recorded as “Occupancy and operating” expenses.
Source: BJ's Restaurants, Inc.